Filters
Question type
Study Flashcards

Brankov Company has current assets of $105,000 and current liabilities of $40,000.The company decides to issue stock and receives cash of $70,000.After this transaction,the company's current ratio will be:


A) 0.68.
B) 1.88.
C) 3.62.
D) 4.38.

E) B) and D)
F) All of the above

Correct Answer

verifed

verified

When an adjustment is made for prepaid rent:


A) an asset increases and an expense decreases.
B) one asset increases and another decreases.
C) an asset decreases and an expense increases.
D) a liability decreases and an expense decreases.

E) A) and D)
F) C) and D)

Correct Answer

verifed

verified

On a classified balance sheet:


A) Accounts Receivable is a current liability.
B) Salaries Payable is a long-term liability.
C) Notes Payable due in one year is a current liability.
D) Dividends is a current asset.

E) B) and D)
F) A) and B)

Correct Answer

verifed

verified

An interim period used for reporting purposes is generally:


A) more than one year,but less than the life of the company.
B) more than one year.
C) less than one year.
D) half of the life of the company.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Accrual-basis accounting records all of the following transactions EXCEPT:


A) earning of unearned revenue received in advance.
B) expiration of prepaid insurance.
C) accrual of expenses incurred but not paid.
D) receipt of Award for Service to the Community of Naperville,Illinois.

E) A) and D)
F) B) and C)

Correct Answer

verifed

verified

The revenue principle requires that a business record revenue when the business:


A) receives an order from a customer.
B) prepares the invoice for the customer.
C) delivers goods or services to a customer.
D) receives payment from a customer.

E) All of the above
F) A) and D)

Correct Answer

verifed

verified

The revenue principle governs two things:


A) when to record revenue and where to record this revenue.
B) where to record revenue and the amount of revenue to record.
C) when to record revenue and the amount of revenue to record.
D) when to record revenue and in which journal to record the revenue.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Which of the following financial statement(s) is(are) prepared using the adjusted trial balance?


A) The balance sheet and the income statement only
B) Balance sheet,income statement,and statement of retained earnings
C) The balance sheet only
D) The income statement only

E) A) and D)
F) B) and D)

Correct Answer

verifed

verified

In the retail industry,revenue is recognized under IFRS when the cash is received.

A) True
B) False

Correct Answer

verifed

verified

On August 1 of the current year,Trevor Beck received $5,400 for legal services to be performed evenly throughout the next six months.The adjusting entry on December 31 of the current year would include a:


A) credit to Unearned Service Revenue of $4,500.
B) debit to Unearned Service Revenue of $900.
C) debit to Service Revenue of $900.
D) credit to Service Revenue of $4,500.

E) All of the above
F) None of the above

Correct Answer

verifed

verified

The Houston Mavericks basketball team receives $5,000 for season tickets on August 1.By December 31,they have earned $2,000 of the revenue.The adjusting entry to be made on December 31 by the Houston Mavericks includes a:


A) credit to Unearned Revenue of $2,000.
B) debit to Unearned Revenue of $2,000.
C) debit to Ticket Revenue of $2,000.
D) credit to Prepaid Revenue of $3,000.

E) A) and B)
F) All of the above

Correct Answer

verifed

verified

The accumulated depreciation account decreases over the life of the asset.

A) True
B) False

Correct Answer

verifed

verified

Some accounts do not need to be adjusted at the end of the period,since the day-to-day transactions provide all the data for these accounts.

A) True
B) False

Correct Answer

verifed

verified

A low debt ratio is safer than a high debt ratio.

A) True
B) False

Correct Answer

verifed

verified

A company started the year with $400 of supplies.During the year the company purchased additional supplies costing $1,600.There were $800 of supplies on hand at the end of the year.An adjusted trial balance prepared at the end of the accounting period will show the following balance in Supplies Expense:


A) $600.
B) $800.
C) $1,200.
D) $1,600.

E) A) and B)
F) C) and D)

Correct Answer

verifed

verified

The beginning balance of Retained Earnings appears on the Balance Sheet and the Statement of Retained Earnings.

A) True
B) False

Correct Answer

verifed

verified

At the beginning of the year,Butters Company's balance sheet showed current assets of $36,000 and current liabilities of $10,000.During the current year,Butters issued common stock for $5,000 for cash and purchased $3,000 of inventory on account.After these transactions were recorded,Butter's current ratio was:


A) 1.17.
B) 1.60.
C) 3.38.
D) 3.60.

E) None of the above
F) A) and D)

Correct Answer

verifed

verified

________ will be increased when a company receives cash before performing the services.


A) Service Revenue
B) Accumulated Depreciation
C) Unearned Service Revenue
D) Accrued Salaries Payable

E) A) and D)
F) B) and C)

Correct Answer

verifed

verified

A company has the following adjusted trial balance: A company has the following adjusted trial balance: What closing entries are needed? A) Debit Service Revenue for $33,000 and credit Retained Earnings for $33,000 B) Debit Rent Expense for $2,300 and credit Retained Earnings for $2,300 C) Credit Retained Earnings for $2,100 and debit Cash for $2,100 D) Debit Dividends for $1,000 and credit Retained Earnings for $1,000 What closing entries are needed?


A) Debit Service Revenue for $33,000 and credit Retained Earnings for $33,000
B) Debit Rent Expense for $2,300 and credit Retained Earnings for $2,300
C) Credit Retained Earnings for $2,100 and debit Cash for $2,100
D) Debit Dividends for $1,000 and credit Retained Earnings for $1,000

E) A) and C)
F) None of the above

Correct Answer

verifed

verified

The amount of prepaid insurance used up during a period of time is called Insurance Expense.

A) True
B) False

Correct Answer

verifed

verified

Showing 101 - 120 of 190

Related Exams

Exam 1

The Financial Statements

177 Questions

Exam 2

Transaction Analysis

173 Questions

Exam 4

Internal Control Cash

166 Questions

Exam 5

Short-Term Investments Receivables

191 Questions

Exam 6

Inventory Cost of Goods Sold

155 Questions

Exam 7

Plant Assets,natural Resources, Intangibles

181 Questions

Exam 8

Long-Term Investments: The Time Value of Money

166 Questions

Exam 9

Liabilities

184 Questions

Exam 10

Stockholders Equity

152 Questions

Exam 11

Evaluating Performance: Earnings Quality, the Income Statement, the Statement of Comprehensive Income

121 Questions

Exam 12

The Statement of Cash Flows

136 Questions

Exam 13

Financial Statement Analysis

119 Questions

Show Answer